Feb 16, 2017 10:47 AM IST | Source: Moneycontrol.com
Sell USDINR; target of 66.80 - 66.60: ICICI Direct
ICICI Direct expects US dollar to meet supply pressure at higher levels. Utilise upsides in the dollar to go short on the USDINR pair. Sell February Futures with a target of 66.80 - 66.60.
ICICI Direct's report on currency
Government bonds rose for the first time in three sessions, as some investors made purchases at lower value buying levels ahead of US CPI data • The benchmark 6.97% 2026 bond yield fell to 6.86% from 6.88% in the previous day • Yield on the US 10-year rose to 2.49% from 2.47% on higher than expected CPI data.
The rupee was little changed against the US currency, as foreign banks’ dollar sales offset weak domestic equity markets while markets remained cautious ahead of CPI data • The US$ lost against major currencies as profit booking set in at higher levels from gains accrued in the previous few sessions. Odds for a June rate hike rose to 80% on hawkish Fed chair comments and higher retail sales and CPI data, which increased to 2.5%.
US$/INR derivatives strategy
In the currency futures market, the most traded dollar-rupee February contract on the NSE ended at 66.97. The February contract open interest fell 5.30% from the previous day • March contract open interest rose 10.64% from previous day • We expect the US dollar to meet supply pressure at higher levels. Utilise upsides in the dollar to go short on the US$INR pair.
|US$INR February futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 67.00 - 67.10||Market Lot: US$1000|
|Target: 66.80 / 66.60||Stop Loss: 67.20|
|S1/ S2: 66.90 / 66.70||R1/R2:67.25 /67.45|
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